2017 · Paper IV · 10 marksFrequently asked

What is human development ? Discuss the importance and measurement of Gross National Happiness Index.

In short

Human development is the expansion of people's choices and capabilities in health, education and living standards, while Bhutan's Gross National Happiness index widens this to cultural, spiritual, ecological and governance well-being. Built in 2008, the GNH index measures nine domains through 33 indicators.

Model answer

Ghissu Editorial · Verified 4 Oct 2026

Introduction
Human development is a multidimensional concept encompassing health, education, and well-being, moving beyond mere economic growth to foster inclusive progress. It reflects a broader understanding of progress that includes quality of life and capabilities, essential for sustainable development in diverse societies like India.
Institutional Foundations
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Human Development Index1 (HDI)

Since 1990, HDI by UNDP measures longevity, education, and income, serving as a global benchmark including India. It highlights the expansion of people’s choices and capabilities beyond income alone.

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Gross National Happiness2 (GNH)

Bhutan’s GNH index adds cultural, spiritual, and governance dimensions to development, emphasizing environmental conservation and ethical values. It broadens the development paradigm by integrating material and non-material well-being.

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Complementary Indices

India also uses indices like the Good Governance Index (GGI) and Panchayat Development Index (PDI) to assess governance quality and local development, providing a more nuanced understanding of human development outcomes.

Implementation and Measurement
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Governance and Local Indices

India’s Good Governance Index (GGI) and Panchayat Development Index (PDI) assess state and local governance, complementing HDI for a fuller human development picture.

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Measurement Challenges

HDI’s limitations in capturing inequality and deprivation have led to the use of complementary measures like the Gender Development Index and multidimensional poverty indices, crucial for targeted policies in states such as Andhra Pradesh.

Way Forward
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Data and Community Empowerment

Strengthen disaggregated data collection in states like Andhra Pradesh and empower local bodies via PDI for targeted human development interventions.

Conclusion
Human development demands a balanced approach integrating economic, social, and cultural factors, with GNH offering valuable insights for sustainable and inclusive growth. This multidimensional focus is vital for addressing inequalities and ensuring well-being beyond income metrics.

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Hand-drawn diagram: HDI vs GNH. HDI vs GNH. Comparison of HDI and GNH
Diagram: HDI vs GNH

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Inclusive Growth: India and AP schemes49 questions

Asked in 8 of 8 sittings since 2008

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